Question

current ratio=2.6 liquid ratio=1.4 working capital=$110000

Answer 1

Answer:

current ratio (CR) =CA/CL=2.6

CA = 2.6*68750$ = $178750

CL = $68750

Explanation:

CA/CL=2.6

CA= 2.6 CL

working capital = CA-CL

$110000=2.6CL-CL

CL = $110000/1.6

CL = $68750

current assets = 2.6 CL

CA = 2.6*68750$ = $178750

CL = $68750

working capital = $110000

Answer 2

The Current liabilities=$68,750

and Current assets=$178,75 is the answer to the given question.

Explanation:

Given:

Current ratio = 2.6

Liquid ratio = 1.4

Working capital = $110,000

Current assets = ?

Current liabilities = ?

Computation:

Current ratio = Current assets / Current Liabilities

2.6 = Current assets / Current Liabilities

Current assets = 2.6 Current Liabilities

Working capital = Current assets - Current Liabilities  

Working capital = 2.6 Current liabilities - Current Liabilities

$110,000 = 1.6 Current liabilities

Current liabilities = $68,750

Current assets = Working capital + Current liabilities

Current assets = $110,000  + $68750

Current assets = $178,750

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